Twitter Shares Falls 10% On Weak Sales

Twitter reached 313 million monthly active users in the quarter that ended in June, a gain of just three million users from the previous quarter. That's despite efforts to attract new users by adding more video streaming and better news curation features.

Without strong user growth, Twitter is now struggling to attract advertiser interest, causing sales to slow.

The social network reported sales of $602 million for the quarter, falling short of Wall Street estimates of $608 million, according to analysts surveyed by FactSet.

Worse still: Twitter is now projecting sales of $590 million to $610 million for the upcoming quarter, falling far below estimates of $682 million.

"We're seeing a continuation of the trends discussed last quarter with less overall advertiser demand than expected," the company said in a letter to shareholders.